Factors that Lead to the Rise and Fall of Companies

Factors that Lead to the Rise and Fall of Companies

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Factors that Lead to the Rise and Fall of Companies

The way a company is managed determines its success or failure in the market. In the management system, there are aspects that make some companies stand out, rise and succeed while others fall. One of the factors that lead to successful companies is improved diversity management. In diversity management, mentoring participation and resource grouping leads to the success of organizations (Frankel, 2012). Companies that have increased and proper utilization of resource groups tend to maneuver their way to success.

Also, when the top management offers their full support to the organization and the subordinates, productivity is enhanced. Proper tracking of organizational metrics ensures efficiency in organizational activities and minimal wastage of resources. It is a means to determine participation, retention, engagement, and promotions in the organization. Apparently, commitment to diversity, based on gender, race, expertise, and different ethnicities and nationalities, boosting a cohesive working environment. Diversity pools ideas together and utilizes them effectively and flexible in meeting organizational goals.

According to Frankel (2012), mentoring is a motivational tool that ensures continuity in an organization. It boosts skills and professionalism leading to competitive and motivated employees, and in the process reducing room for error. In this case, Company A succeeded for using the aforementioned parameters. Companies that fail do so because of lacking diversity in their workforce. For example, Company B shows little embracing of diversity, community outreach, and internal development. The lack of resource-group representation and diversity translates to a failing company; this is marked by the fact that the top management is made of all whites leading to zero ethnic and racial diversity.

The underrepresented resource groups tend to lack motivation due to the feeling of lacking equity. The formal mentoring program for the company was affected due to the low motivation of the employees. There is thus the need to increase resource group utilization and diversity representation. The other factor that leads to the success of the organization includes increased accountability (Frankel, 2012). Company C is one good example that has utilized accountability to succeed and measurable goals to succeed. On the other hand, the failure of company D is as a result of poor accountability and lack of diversity leading to internal and external incompetency.


Frankel, B. (2012, August 15). Diversity Management: Why DiversityInc Top 50 Companies Rise/Fall. Retrieved from http://www.diversityinc.com/diversity-management/why-companies-rise-and-fall/

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